Experts: US Dollar Ready to Break to 12 Month Highs if Euro Collapses

Is the Dollar heading up or heading down?

When you boil it down, the US dollar’s current role in the global financial market is the safe haven and liquidity provider of last resort. To drive the greenback higher, a slide in risk appetite and deterioration in normal market function would represent the ideal fundamental conditions. That being the case, we may finally see a passive appeal for the benchmark turn into a genuine trend moving in the week ahead if the Euro Zone’s fresh sovereign debt troubles infect underlying risk appetite trends.

So far this year, we have yet to see a meaningful rebound in trading activity – bullish or bearish. Between the fading outlook for economic activity, yields and financial health and the hope that policy officials will foot the bill with stimulus; the masses seem to have kept to the sidelines rather than instigate a wholesale deleverage or add to bailout-dependent positions. However, it is only a matter of time before this particularly immense fundamental clash takes a definitive bearing. And, considering the woeful lack of consistent yield to be found in the market along with the steady economic and financial troubles rolling in; fear is by far the more pressing emotion.

US Dollar Ready To Break To 12 Month Highs If Euro Collapses - TheStreet